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Why is so much consolidation of ISP s happening at the moment and what should I do if my ISP closes

01:00 Mon 22nd Apr 2002 |

Asks Justin

A. Many Internet Service Providers (ISP's) have either folded or consolidated lately because it is a natural development in a developing market - last year there were just too many for the UK to support and as with any industry as it matures many of the smaller players merge or are forced out of the market.

If your ISP suddenly vanishes from the market or informs you that it will be closing its business try and get a refund for any money you have paid up front; contact the UK ISP Users Group - this organisation was set up in 2000-20001 to offer help, negotiation, advice and information on all ISP-related matters in the UK; also let Net Basics know, there are an independent company that specialises in providing information to individual consumers about ISPs and they can advise you on signing up with a new provider; find another one quickly that offers a cheap service and sign up - go for one of the bigger companies if you want to ensure that your future service is uninterrupted.

Q. Can you recommend a reliable ISP

A. There are several ISP's on the market and with many smaller, independent ISPs folding it is probably best to aim for one of the big guns so that you can guarantee a reliable service.

AOL (merged with Time Warner in January 2000): For a fee of �15.99 (the price rose by �1 in April 2002) per month, AOL offers unlimited Internet access, with no set up fee. It also offers email addresses, password protected connections, it can however, run slowly at peak times.

Currently AOL is the world's No.1 ISP and carries exclusive media content to attract its customers, it is not owned by a large Telco.

BT Openworld: BT boasts over one million new customers since it introduced its flat fee, initially �25 per month but now a competitive �14.75 (it was reduced in February 2002 and is set to escalate the company's growth) - and is one of the top three ISPs in the UK (the other two are AOL and Freeserve).

Its new broadband package, currently being marketed on TV and through billboards is estimated to have set the company back �10 million - and although run by a separate company legally - it is likely to help BT Openworld grab a lot more customers.

Wanadoo: You may not have heard of Wanadoo yet, but you will do soon. It is owned by France Telecom and now owns Freeserve, which is reported to be the most popular ISP in the UK. For �13.99 a month (the price rose by �1 in April 2002), Freeserve offers unlimited Internet access. Check via the Freeserve website to ensure that the area in which you live is available for connection, as it is popular so you sometimes have to wait a couple of weeks.

Tiscali: Nobody in the UK was aware of the Italian media giant until last year when it started acquiring smaller ISPs, most notably ISP World Online and LibertySurf. It is an ISP in 15 European countries making it the biggest (in terms of the area it covers, rather than subscribers) in Europe - and its still growing.

Compuserve: One of the first ISP's to launch, it offers free Internet access for the first month of your subscription, followed by a monthly fee of �7.50, and calls charged at 50p per minute.

It is rumoured to have been undergoing some financial difficulties lately but its owner AOL has denied rumours that it is going to close the service or indeed merge it with its own AOL-branded service.

Q. Do all ISP's charge a fee

A. ISP's will usually charge a fee for use either by subscription (usually a monthly flat rate fee for unlimited Internet access) or not (where you usually pay as you go via your telephone bill, sometimes at a premium rate). A fee can also be levied on the telephone call, even though you have paid a subscription fee upfront - so its best to check that any subscription fee is for unlimited Internet access (or if it is not you know about it and what the call charges are), otherwise you could end up with a hefty phone bill too.

Some ISPs do offer a free service these include www.x-stream.com, www.freewayuk.com and www.thisisit.co.uk.

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By Karen Anderson

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